Certificate of 35 (1&2)
To undertake and promote reinvestment of business profits in areas where massive capital input is required for socio-economic development, a tax incentive has been provided under 35AC, of the Income Tax Act allowing for full deduction of the entire amount paid by a taxpayer carrying on a business or profession for financing projects or schemes promoting social and economic welfare. The objective of the said provision is to encourage business organizations and wealthy individuals to contribute more in social and economic welfare of general public. By donating any amount for any approved project under the provision of 35 AC of Income Tax Act, a donor will receive 100% rebate of Income Tax on the donated amount. Thus NGOS can raise millions of rupees for approved projects under 35 AC of Income Tax Act leading to mutually beneficial relationship between corporate sector and civil society.
